UAEG OUTLINES EFFORTS TO COMBAT ILLICIT ZIMBABWEAN DIAMOND

C O N F I D E N T I A L ABU DHABI 000354

SIPDIS

DEPARTMENT FOR NEA/ARP, AF/S (WALCH),AF/EPS (ZIKRY) AND EEB/ESC
(BROOKS-RUBIN)

E.O. 12958: DECL: (#####)
TAGS: ETRD PREL ECON EFIN ASEC ZI AE
SUBJECT: UAEG OUTLINES EFFORTS TO COMBAT ILLICIT ZIMBABWEAN DIAMOND
TRADE

REFS: A) 3/14/09 BROOKS-RUBIN/COOPER EMAIL
B) STATE 18545
C) 08 ABU DHABI 1463
D) 08 STATE 126054


1. (U) This cable contains an action request -- please see para 4.


2. (C) On April 6, EconOff discussed Ref A, B and D points on illicit
trade in Zimbabwean diamonds with Ali Fayel, Ministry of Economy
Director of Origin, and Maryam Al Hashemi, Director of the UAE
Diamond Control Office. Fayel and Al Hashemi outlined UAE policies
and practices to control trade in conflict diamonds from Zimbabwe and
elsewhere. They told EconOff that the Ministry of Economy is
currently reviewing the UAE Rough Diamond Trade law (#13/2004) to
respond to concerns raised in the UAE's 2008 Kimberley Process (KP)
Review. In particular, the UAEG plans to strengthen the enforcement
mechanism to ensure that violators are prosecuted. Currently,
customs officials seize suspect or illicit shipments, but smugglers
usually face immediate deportation rather than prosecution. Al
Hashemi noted that Dubai Customs detained a Zimbabwean woman in fall
2008 who attempted to smuggle a large quantity of rough diamonds from
Ethiopia. Dubai Customs seized the diamonds and deported the woman.


3. (C) Al Hashemi said she conducted training for customs officials
in Dubai, Abu Dhabi, Sharjah, Fujairah and Ras Al Khaimah in 2007 and
2008 on the Kimberley Process and rough diamond identification.
(Note: Each UAE emirate has a separate customs authority. End Note.)
In addition to verifying the KP certificates and invoices that
accompany diamond imports, Al Hashemi said the Diamond Control Office
used to confirm each shipment with the exporting country. However,
African countries routinely failed to respond to UAE requests for
confirmation of KP certificates from African countries, including
Zimbabwe. Al Hashemi said that the UAE continues to reconcile
quarterly and annual trade data with all diamond exporters, per KP
standard practice. She added the UAE finds it difficult to
distinguish between Zimbabwean diamonds and other African diamonds.
EconOff suggested utilization of Ref B's Marange production footprint
guide.


4. (C) Fayel said the UAEG was deeply concerned by Ref B and D
suggestion that UAE nationals are trading in illicit Zimbabwean
diamonds. Al Hashemi noted that the diamond industry in the UAE,
which consists of approximately 60 active firms, is almost
exclusively handled by expatriates. Al Fayel said the UAEG had no
indication that UAE nationals are involved and asked that the USG
provide specific information to support this allegation, so that the
UAEG could respond appropriately. ACTION REQUEST: Post asks that the
Department provide any available details related to UAE national
involvement.
OLSON